Zynga Earnings Preview: Get Ahead of the Analysts

Zynga (NASDAQ:ZNGA) will report earnings after markets close on Wednesday, April 24th. Zynga wants to give the world permission to play. Every day, we connect people on seven continents and deliver a dose of don’t take yourself so seriously. Seriously. To us, the best games encourage people to engage with others, fuel the imagination, and bring out the joy that sometimes gets lost in the daily grind.

Here is your Cheat Sheet to Zynga Earnings:

Earnings Expectations: Analysts expect earnings of $-0.04 per share on revenues of $209.79 million.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.01 to a loss $0.01. For the current year, the average estimate is a loss of $0.05, which is worse than the estimate ninety days ago.

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Earnings Trends:

Here’s how Zynga has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 19.41 121.47 597.46 1,140 1,281
Diluted EPS ($) -0.18 -0.31 0.11 -1.40 -0.28

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 311.24 320.97 332.49 316.64 311.16
Diluted EPS ($) -1.411 -0.12 -0.03 -0.07 -0.06

Past Performance:
Zynga has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)